The Forum for Partners in Iran's Marketplace

September 2018, No. 88

Iran Alumina Company

Touraj Zare,
Head of
Iran Alumina Company

Due to the unique properties of aluminum and the strategic role of this metal in the world, its use has become widespread in many industries, especially high-tech industries, and the market demand for this metal has increased dramatically.

Considering the goal of producing high grades of this metal in the country’s development plans and the construction of several aluminum billet factories the importance of production of this strategic metal, the main source of its production being aluminum oxide (AL2O3) with high purity becomes clearer.

Meantime, the only producer of alumina powder in the country is Iran Alumina Company, Jajarm Complex. Geochemical exploration of Jajarm bauxite mines, located 10 kilometers northeast of Jajarm, in North Khorasan Province, reflects the fact that the storage and quality of Jajarm bauxite is good enough to justify the creation of an alumina production plant.

The main problem in the development of aluminum industry in the country is the supply of its primary material, alumina, which is also dependent on the supply of its primary substance, the bauxite mineral. Iran lacks rich bauxite resources due to its geographical location. At present, the geological reserves of the country are less than 50 million tons. Of these, the definitive reserves were less than 20 million tons and the recoverable reserves were less than 10 million tons.

Naturally, industrial planning in the field of production will depend on recoverable reserves. In our country, we need 1 million tons of bauxite annually for the alumina plant. Therefore, the main channel for developing this industry passes through expansion of the capacity of raw materials supply, in particular bauxite.

Iran Alumina Company has put in place three main approaches in this regard, including “strengthening the field of exploration”, “using private sector capabilities” and “using technical engineering services in the form of consultancy for mining and exploration operations”.
Iran Alumina Company, in the first place, focused on the field of exploration.

In 1394 (2015/16), by adopting a proper approach and through public call two contractors were assigned to fulfill this task. The result of their valuable efforts was to add 14 million tons of bauxite to the country’s definitive reserves and increase it to 34 million tons. This calendar year (started March 21, 2018) too, the target of 20,000 meters of exploration drilling is in the company’s plans. It is hoped that by findings of the exploration, Iran Alumina Company’s definitive reserves will increase to more than 40 million tons. In the second step, we intend to provide bauxite based on the capabilities of the private sector.

The main potential in this sector is in small mines that are owned by the private sector. The result of this approach was the purchase of 70,000 tons of quality bauxite from the mines around Jajarm and two private-sector mines.
The third plan of Iran Alumina Company was to inject technical and engineering knowhow in the form of consultation into the field of exploration and development of alumina reserves. In this approach, with long-term foresight and decision making, the concentration of bauxite extraction from available and quality resources in Jajarm was directed to other existing mines including Tash, Semnan and Yazd.

Also, in order to strengthen the competitiveness of the finished cost canal, the consumption of energy and primary materials diminished.
Meanwhile, it must be noted that the development of this industry and, in general, its related industries, especially the aluminum industry, requires revision of some existing policies. Currently, more than 65 percent of the country’s alumina is imported, so any major decision that could strengthen the country’s alumina plant will prevent exit of foreign exchange from the country.

This calendar year, there are several plans to expand the dimensions of this industry in the country’s economic system. The completion of Jajarm Bullion Project is a major development project of the company in 1397 (2018/19). The project, with a significant improvement over the last two years, has been completed %87.30. Also, the Aluminum Billet Project with a capital of 1,300 billion rials will be launched with private sector participation.

Other projects, such as Special Hydrates Generation, are using the highest level of technology in our upcoming business calendar. In addition to the above, the operations of the second and third phases of aluminum ingot production and downstream industries, including flat aluminum plates and aluminum alloys, are included in the future plans of Iran Alumina Company. Meanwhile, due to the increase in Iran’s alumina bauxite deposits and exploratory activities carried out over the past two years, the start of the second phase of the development of Iran Alumina Company in Jajarm has been taken into consideration.

Address: KM. 7 of Sankhast Road to Jajarm,

               North Khorasan Province – Iran

Tel.: +985832272086, +985832605944      Fax: +985832273190       Email:


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  September 2018
No. 88